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originating in, and supported by, the priests. It is said that the Catholics of Ireland are merely moving like a drilled battalion at the command of their episcopal commanders-in-chief. I beg to say that nothing of the sort is the case. No man reverences more than I do the Catholic clergy and hierarchy of Ireland; but I, as a Catholic Member of the House, take upon myself the responsibility of saying that, if there were a hesitation, if there were a variation, in the attitude of the Catholic Bishops and priests of Ireland, with regard to the absolute necessity of the Catholic education of the Catholic people of Ireland, dearly as the people of Ireland love their faithful pastors, from that day a gulf would be fixed between the people and the clergy. If, by an impossible and monstrous hypothesis, the Catholic clergy and Bishops of Ireland were to be in favour of secular education, they might go to Zululand, they might go to Patagonia; but a new class of priests and Bishops would have to appear in Ireland to resume the unbroken traditions of Catholic Ireland. That is, as I have said, a monstrous and impossible hypothesis. The priests and the people are united on the subject; but I beg to assure the House that the question of Catholic education in Ireland is a layman's question. If the present moderate demand of the Irish people is refused, the Catholic laity of Ireland will take it up with determination, and there is no doubt as to what will be the result. Supposing there is any irresolution on the part of the clergy, the laity will insist that the Irish people shall receive an education which will fit them for the combat of life, for progress in every department of the world's affairs, in conformity with the conscience, the hereditary instincts, and the glorious traditions of the Catholic people of Ireland, who look back upon 45 generations of Catholic ancestors.

THE MARQUESS OF HARTINGTON: I must confess there appears to me to be hardly sufficient cause for the expressions of despair and irritation which have reached us from a certain quarter of the House. If hon. Members representing Irish constituencies will consider the position of this Bill, I think they will be obliged to acknowledge that they have cried out before they are hurt. I really cannot remember any

Bill of similar importance to the Bill which is before us having made such rapid progress. If they will take the trouble to consider the matter, they will find that it was only introduced by the assistance of the Government on this day last week, and it has already received a considerable amount of discussion on the second reading. I rose yesterday, immediately upon the adjournment of the debate, to press upon the Government the expediency of making some arrangement as to its resumption; and I do not think that anyone will suspect I am indifferent to the importance of the subject, or that I have refrained from impressing the importance of it upon the notice of the Government. I think that the Government, upon further consideration, will see that it is not only desirable, but absolutely necessary, that a question which has excited so much attention as this, not only in Ireland, but also in England, and in this House, should receive further and full consideration before the close of the Session. The reason for this was given by the hon. Member for North Warwickshire (Mr. Newdegate), and the hon. and gallant Member for Galway (Major Nolan); and I hope the opportunity will be afforded before we arrive at a late period of the Session. I do not detect in anything which fell from the Chancellor of the Exchequer an absolute refusal to give an opportunity for further discussion. I understood him to state simply the position of the Government Business, and to say, under these circumstances, it was not in his power to fix at this time a day for continuing the debate. The hon. Member for Roscommon (the O'Conor Don) has taken a proper and reasonable course in putting the Bill down for an early day after Whitsuntide, when the House and the Government will be able to see what progress they have made, or are likely to make, with some of the most important measures, and the Government will also have an opportunity of further considering the importance of this great subject, and the necessity of giving the Bill some further consideration. I really think that hon. Members from Ireland might wait, at all events, until after Whitsuntide, before they express their condemnation of the conduct of the Government; but, so far as I am able to judge, there is nothing which has fallen from the

We should have been children, did we not see that he did not mean to afford opportunity for the resumption of the debate upon this Bill. If the Chancellor of the Exchequer retains his present ideas, it is hopeless to suppose the Bill can be passed; and I see no reason why he should retain the unfortunate idea he has taken up. I will not prolong the debate; but I should not abandon the Bill hastily if the Government retain their opinion after Whitsuntide. We shall have had an opportunity of considering the matter, and we may take such measures as may seem desirable and necessary in reference to the subject.

Chancellor of the Exchequer to-night | passed, and the small amount of prothat in the slightest degree approaches gress which had been made with others. an absolute refusal to give the consideration required on behalf of the Bill. DR. WARD said, hon. Members had complained that the House had been taken by surprise in this matter, and that very short Notice had been given of the Bill. The question, however, had been before the House for the last 20 years. It had been brought forward by responsible Ministers of the Crown of opposite sides; and, under those circumstances, were they to be told that they were taken by surprise? Why, this Parliament had heard the arguments over and over again. There was no proposal in the present Bill which had not already been before the House. Surely the House had by this time made up its mind; and if the Government were in earnest in this business, it certainly must be within their power to give them a Saturday for the discussion of the subject. Hon. Members might say that if such a course was pursued the Motion would be againt the Irish Members. But if that were so, often as they differed, he could assure the House that they would pass the Bill in a proper form. What he wanted to impress upon the Chancellor of the Exchequer was this-The right hon. Gentleman knew he would have to give in at some time, that he would have to sacrifice a day sooner or later. Let him, then, make the sacrifice graciously now. Give them a day-say a Saturday; that would not sacrifice the time of the Government, but it would meet the requirements of this Bill.

MR. PARNELL: I do not join in the belief that has been expressed by hon. Members that it is hopeless to try to pass the Bill. The hon. Member for Ros

MR. SHAW: I think we need not continue the debate further, especially after the appeal to the Government by the noble Lord. I shall, therefore, ask permission to withdraw the Motion. Motion, by leave, withdrawn.

THE "HOME RULE" PARTY.

QUESTION.

SIR JULIAN GOLDSMID: I beg to ask the hon. Member for Cork County

Mr. Shaw) the Question of which I have given him private Notice, Whether we may in future look to him as the Leader of that section of the House below the Gangway, called the Home Rule Party?

MR. SPEAKER: The Question of

the hon. Baronet does not refer to any Bill or Motion before the House, and cannot, therefore, be put.

ORDERS OF THE DAY.

common (The O'Conor Don) has adopted INDIA - EAST INDIA REVENUE AC

a courageous course in persevering with the measure for a while longer. At the same time, I do not agree that the Chancellor of the Exchequer has done everything that is required of him. The hon. Member for Roscommon has asked the Chancellor of the Exchequer to give a day for the resumption of the debate, and he did not ask for the day to be mentioned at the present moment, but what was the reply? The Chancellor of the Exchequer went over a long list of Bills introduced by the Government, and he pointed out how very few had been

The Marquess of Hartington

COUNTS-FINANCIAL STATEMENT.

COMMITTEE. [FIRST NIGHT.]
Order for Committee read.

MR. E. STANHOPE, in rising to move "that Mr. Speaker do now leave the Chair," in order that the House should go into Committee upon the East India Revenue accounts, said, that in making the usual Statement with regard to the finances of India he felt, looking to the numerous and intricate subjects with which that Statement must necessarily deal, and to the public interest

which the subject of Indian finance had | accounts for 1877-8 showed a gross Rerecently evoked, that no one who had ever occupied the post which he had the honour to hold deserved more the consideration and indulgence of the House. But whatever might be about to happen in the course of the debate, he felt it to be his duty, in the interests of India, to make as clear and as impartial a Statement as he could, even if, in so doing, he should have to trespass for some considerable time upon that indulgence. No subject was more commonly discussed in the debates of last year than the difficulty which some hon. Members experienced in consequence of the changes that had taken place in the form of the Revenue accounts. At that time he had pointed out that these changes had been adopted in consequence of representations made in the House at different times as to the desirability of assimilating, as far as possible, the form of the Indian to that of the English accounts. It was, however, quite impossible to deny that there was a great deal of force in the arguments of some hon. Members; and, therefore, he had endeavoured to prepare a Statement in accordance with their views. And before leaving the subject of the forms of accounts, he would remark that the India Revenue accounts were, as usual, converted in accordance with the conventional system of taking 10 rupees to the pound. The main reason for this was convenience. Indeed, it would scarcely be possible in any other way to make the accounts really intelligible. It would, of course, be open to the Government to convert the accounts at the rate of exchange of the year; but that would prevent any possibility of comparison, and would cause great difficulty in the presentation of Estimates for a coming year, as the rate of exchange itself would be a mere guess. It would, also, be productive of inconvenience in other ways for instance, if the Government should want to convey to the House a clear idea of the salary of a member of the Council, or other official, such salary would necessarily appear in varying amounts, whereas they all knew it was really a fixed payment in gold, quite independent of the rate of exchange.

venue of £58,969,300, and a gross Expenditure of £62,512,400, leaving a deficit of £3,543,100. This result, as the House was aware, was mainly due to the famine in Southern India. It approximated so closely to the regular Estimate which was given last year that there was no need for him to trouble the House by dwelling upon the details.

The figures for 1878-9, as set out in the regular Estimates, showed a considerable increase on both sides of the account. As he explained last year, this was mainly due to the incorporation into the general accounts of provincial income and expenditure amounting to about £2,000,000, and on the Revenue side, also, to the proceeds of the new taxation imposed last year. The gross Revenue was accordingly taken at £64,687,000, and the gross Expenditure at £63,236,000, leaving a surplus of £1,451,000. When it was remembered that, in addition to the expenditure which he anticipated last year, they had had an enormously increased loss by exchange, and had paid £670,000 on account of the war in Afghanistan, this result did not compare unfavourably with that which was predicted last year, or with the Estimate which he gave in December last, based upon such information as the Government then had. It was then calculated that, after payment of the war charges of the year, the surplus would not exceed the sum of £600,000. The real surplus had turned out to be £1,451,000.

He now came to the figures which it was his duty to lay before the House for the three years under review. The

The finances of India had been terribly affected by the recent famine. The direct loss of Revenue, owing to this cause, was estimated at about £9,400,000, in addition to the loans to Native States and the cost of a railway constructed as a famine relief work. Altogether, the Government of India believed that the disbursements necessitated by the famine amounted to no less than £13,000,000, the loss to the country being still greater. From Mysore and Madras, in which parts of the country the famine had made such terrible havoc among the people, the Government had, he was glad to say, received the most conclusive testimony of the great good effected by the charitable funds so largely subscribed in this country. Houses had been restored, thousands of horses had been given or let on hire, seed had been provided, and [First Night.]

looms, ploughs, and other implements have cash in hand for their immediate furnished in numerous cases. From necessities, but would be able to reduce Mysore the Government learnt with their remittances to this country by that gladness that the crops were in good amount. condition, and that there was a prospect of a speedy return to the former prosperous condition of that country. From Madras, for a time, the accounts had not been so good, but recent rains had caused a great improvement in the prospects of the Province; while it had been found possible to discontinue relief works at the end of last year. The Government of India, therefore, in framing their Estimates for the coming year, were able to lay aside any considerable anxiety with regard to the two districts to which he had referred.

But one or two difficulties had to be surmounted. They had to provide for what he was glad to be able to call the late war in Afghanistan, and they had to meet the enormous loss which would be sustained in the operation of transmitting to this country the full amount of £17,000,000 required to meet all their home payments during the year. The actual payments on account of the war, which had been brought into the accounts of 1878-9, amounted to £670,000, which was considerably less than the sum at which his noble Friend the Secretary of State for India (Viscount Cranbrook) and he (Mr. E. Stanhope) had ventured to estimate it in December last an estimate which was much criticized at the time. For the present year, the cost of those operations was estimated at £2,000,000. He had heard it said that this was an inadequate estimate, and that various high authorities shared this opinion. With all due respect to those authorities, he submitted that when their opinion was formed it was impossible for them to have correct data before them. The Government of India, who were responsible in the matter, had made that estimate, believing it to be a correct one, after full consideration of the circumstances in which they were placed by the position of affairs in Afghanistan, and the policy which was being pursued there. And, accordingly, it was arranged that a sum of £2,000,000 should, with the consent of Parliament, be advanced out of the Imperial Exchequer, no interest being payable, and re-payment to be made in the course of seven years; so that the Government of India would not only

Mr. E. Stanhope

In

The difficulty due to the Afghan War having been disposed of, there remained one other matter to be considered before the Estimates could be framed. He alluded to the import duties upon cotton goods. The House would recollect a famous Resolution in connection with this subject passed two years ago. consequence of that Resolution, the Secretary of State, not only in his own name but in that of the Council also, sent a despatch to the Government of India, in which he said that, looking to the condition of their finances, he did not think it probable that they would be able then to achieve the repeal of the whole of the cotton duties, but in which he also pressed upon their immediate attention the necessity of dealing with those portions of the duty which were undoubtedly protective in their effect. Upon those instructions Lord Lytton immediately acted, issuing a Commission to inquire into and investigate the whole subject; and, in the meantime, he exempted from the duty certain coarse descriptions of cotton goods, about which there could be no doubt as to the operation of the duty. That policy was universally approved. Since that time the Report of the Commission had been published; but to judge from certain minutes which had been delivered to the House, it had not been fairly studied by everyone interested in it. What did that Report show? It showed-first, that the extent to which the duty was directly protective had been very much under-estimated, and that it was desirable to extend, at the earliest possible date, relief to the suffering branches of the import trade in those goods; and, secondly, that that part of the duties thus shown to be undoubtedly protective could be removed without any very serious loss of revenue. It then remained for the Government of India to decide whether they would attempt to maintain a limit which was logically indefensible and practically utterly impossible to maintain, and so keep up the sources of irritation that existed between England and India; or whether they would follow the lines of policy laid down by the Secretary of State in Council, commenced last year, and approved

by that House, and extend the limits of exemption to all those portions of the duties that were distinctly protective. The Government of India chose the latter course, and what had happened since? A discussion had taken place in that House, and the course determined upon by the Government of India had been entirely approved by a vast majority. Whatever objection might be made, either in reference to the merits of the course pursued or to the mode in which it had been carried out, he was perfectly satisfied that the Governor General of India would not have sanctioned that course except in the belief that it was the best, under all the circumstances, for the interests of India.

He came now to the Budget of the year. Including, then, the whole of the war expenditure which could at present be in any way foreseen, but excluding, as he had throughout done, the capital expenditure upon productive Public Works, the figures for 1879-80 were as follows:-The gross Revenue was taken at £64,562,000, the gross Expenditure at £65,917,000; or, according to the calculation of net income and expenditure which had been placed in the hands of hon. Members, the net Revenue amounted to £43,623,100, and the net charges to £44,978, 100, leaving a deficit for the year of £1,355,000. But if the Bill which his right hon. Friend the Chancellor of the Exchequer would introduce for the advance of £2,000,000 from the Imperial Exchequer became law, there would remain in hand a sum of £600,000 to meet any contingencies which might arise. Before he proceeded to attempt any general view of the financial position of India, it was right that he should call attention to the changes in some of the items of Revenue and Expenditure which the tables recently distributed would enable any hon. Member to follow as he traced them during the three years under review. Some of the principal variations which were to be observed were due to the great disturbing element of the famine in Southern India and the scarcity which prevailed elsewhere. The net proceeds of land revenue, for instance, were abnormally depressed in 1877-8, and they were largely swollen in the intermediate year by the arrears which had been collected in Madras to an extent beyond expectation. Although a small amount of

arrears had still to come in, the revenue under that head was almost restored to its normal condition. In the same way, the drought in Upper India seriously affected the proceeds from the Forests and from Excise; but under both those heads some improvement was expected this year. The receipts from Customs were more difficult of comparison, because of the changes in taxation and the reforms in the import tariff. Last year, mainly by the abolition of the sugar duties, but also by striking out of the tariff articles which yielded only an insignificant amount, and certain coarse cotton goods, revenue was sacrificed to the extent of £232,000. This year the exemptions from the protective import duty of all cotton goods containing no yarn finer than 30's and the changes in the tariff valuations involved a loss of £192,000, making a total of £424,000. In spite of this, and also of the very great commercial depression which had existed, some recovery had taken place in the Revenue. The net receipts from opium_showed an extraordinary fluctuation. In 1878-9, they exceeded the estimate by no less than £1,584,000. In consequence of the abundant crop of 1876-7 the stock in hand in 1877-8 was very large. Owing to a reduction of the payments to the cultivators and a failure of the crop, the charges were considerably less; but the saving appeared in the accounts of 1878-9. It was altogether an exceptional year, and the Estimates this year, though very much lower, showed, when compared with ordinary years, the expectation of more than the average receipts. The new taxation recently imposed, and which could be traced in the accounts, partly under the head of assessed taxes and partly under that of provincial rates, was expected to bring in this year about £1,300,000; and there would still remain for future years a small addition for a portion of the famine cess in the North-Western Provinces, which had not yet been levied.

The salt revenue showed only a very slight increase. The rise which was to be noticed last year, as compared with 1877-8, was due partly to the rectification of an erroneous procedure in the accounts from Madras, and partly to the fact that in the earlier year traders held back in the expectation of the reduction of duty, which did, in fact, take place a few months later. The revenue [First Night.]

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